1. Field of the Invention
This invention relates generally to wireless communication service systems such as mobile cellular subscriber services, and more particularly to a system and method for enabling a user of such services to easily switch among various available service providers based on real time cost and service feature information.
2. Background and Prior Art
Conventional wireless communications services suffer from several technical and structural limitations which inhibit competition and reduce user flexibility, thus raising prices and restricting usefulness. The most common of such services is cellular radiotelephone subscriber services, however this invention is equally applicable to all equivalent wireless communication subscriber services such as mobile data unit communication services and wireless modem portable computer communication services.
Competition exists in two-way wireless communication services primarily because the Federal Communications Commission has established guidelines to promote at least two service providers in each geographical region. But the technology of the conventional system allows service providers to "capture" customers and charge excessively high rates. More intense competition in the wireless communication market would drive down prices in the same way that competition in the land-wired long distance market has reduced prices significantly, and thus would benefit consumers.
Under the existing system wireless communication service providers only face true competition when attracting new subscribers. Once a consumer has subscribed to a particular service provider, it is difficult to switch providers so competition is limited and the consumer is subject to the pricing considerations of a near monopoly. Two primary factors which inhibit the switching capability of consumers are the present technological limitations of individual mobile communications devices and the lack of complete and understandable information on service rates.
Under the existing system, switching between service provider requires that cellular radiotelephones be reprogrammed at a designated location with specialized equipment or by individuals with specialized knowledge. Most consumers do not have extensive familiarity or knowledge of the internal operations of cellular telephones and thus are discouraged from attempting reprogramming, even where individual mobile devices may possess such a capability. In order to switch to a different service provider, the consumer thus had to transport his or her cellular phone to a specific location for special programming by dedicated equipment or support personnel and pay a service charge. Such hidden costs and extensive efforts have dissuaded consumers from switching to another carrier, thus reducing competition and raising prices.
This problem is even more acute in roaming situations (i.e., when the mobile communication device is moved outside the coverage area of the "home" system). Without switching capability, the consumer is locked by technology into utilizing one particular service provider. This is essentially monopoly capture. Since the provider of the roaming communications service does not have to be concerned with competition, roaming service charges are often several times higher than home system rates. The only option left for the user to avoid these high rates is not to use the service--to switch off the device.
But even if switchable mobile communication devices existed in the prior art, the lack of information on service rates would still inhibit flexible consumer switching. The problem is that consumers simply cannot keep up with constantly changing subscriber systems and prices. True rates are usually not known by the consumer because service providers often combine subscription fees, per-minute charges, and special promotions to entice consumers to subscribe to their networks. There is little incentive for providers to clarify their rate structure because of the difficulty associated with a subscriber attempting to switch to another provider. Consumers are at an even greater disadvantage while roaming. It is a formidable task for individual consumers to acquire and process all the different rates in areas where they may be traveling.
One further problem with the prior art of wireless communication services is that prices are inflexible and cannot be altered to reflect actual real time demand. This problem is especially acute in the current cellular telephone industry. For example, the current cellular industry generally charges two separate rates: a higher rate for predetermined peak periods and a lower rate for predetermined off-peak periods. This system is inadequate for both wireless service providers and users. In areas and times of high volume usage, cellular subscribers may be unable to place a call because demand outstrips the limited capacity of the system. High paying subscribers--those who have purchased large "inventories" of call minutes--or those making important phone calls face the same probability of acquiring an open channel as infrequent users or individuals making less important calls. This is highly inconvenient and expensive--users are paying for inventories they can't use. This current system also hinders the economic efficiency of the wireless service providers. When demand exceeds capacity, revenue is being lost because there are users willing to pay a higher rate in order to be assured of acquiring a channel; in this instance raising prices would have the effect of substituting the users willing to pay the higher rate for those users who are not willing to pay. And when capacity significantly exceeds demand, assets are depreciating but not are not generating revenue. Reducing prices to stimulate demand would allow these assets to generate revenue when otherwise they would not.
Several systems have been disclosed that seek to remedy some of problems outlined above. U.S. Pat. No. 5,159,625 discloses a method where a remotely programmable cellular radiotelephone is configured to select particular cellular service providers while roaming. The cellular phones undergo periodic reprogramming over the air by a base computer system. The programming dictates to the phone which roaming systems may or may not be used by the individual phones while roaming. This system requires that the decisions for broad classes and types of devices be made by a central processor. This central decision making is flawed in that all consumers are lumped into one group, irrespective of their individual communications patterns and needs. This sharply reduces consumer flexibility and limits the potential benefits of competition. Secondly, this method does not inform the consumer of the parameters involved in the process: other factors besides price and services may enter into the decision of which service provider to use. The consumer is completely unaware of the hidden costs and contracts that may affect the programming of their individual devices, thus also limiting true competition. Thirdly, this method does not address the situation in which rates change between reprogramming intervals, thus rendering the programmed parameters no longer accurate.
U.S. Pat. No. 5,357,561 discloses limited centralized control or programming of wireless devices through paging techniques. Programming by paging methods requires added capacity and overhead, yet cannot offer the consumer the level of information and flexibility necessary to introduce true competition and selection capability.
U.S. Pat. No. 5,303,297 discloses a dynamic pricing method for wireless communication in which price structure is varied in real time according to the load (i.e., number of simultaneous users) on the system. The number of the destination dialed by the user is transmitted to the service provider, where the system computes the calling rate based on the location of the caller, the location of the destination station, and the current system load. The system transmits the computed rate information to the user's device where it is displayed. The user may then accept the rate and complete the call or decline to accept the rate in which case the call is dropped. This method does not allow a user to select a different, lower cost provider to complete the call.